The Sui network will expand its custody capacities through a deal with custody, prime and collateral services provider Copper. Sui is looking to increase its attractiveness to institutional finance.
Sui said in a statement that Copper custody support is already available for Sui-native tokens such as the Ondo USD Yield (USDY) stablecoin.
Sui reaches for real-world assets
New custody features for staking and other decentralized finance functions will be rolled out that will enhance the options for clients issuing stablecoins and real-world assets. Sui Foundation managing director Greg Siourounis told Cointelegraph:
“Copper’s presence on Sui immediately improves its infrastructure by incorporating enterprise-level custodial solutions, which is an important prerequisite to onboarding large institutions. As TradFi continues to lean into crypto, Sui is now firmly in the conversation as a top destination to store and deploy digital assets.”
Related: Can blockchain revolutionize digital securities management for stock exchanges?
Sui is a layer-1 blockchain and smart contracts platform developed by United States-based Mysten Labs and introduced in March 2022. Mysten was founded by former Meta executives. In April, Sui partnered with BytePlus — an arm of TikTok parent company, ByteDance — to boost its scalability and data processing.
A bigger share of a big market
Since April, Sui has also been home to FDUSD, an unwrapped native stablecoin offered by the Hong Kong-based First Digital Group. Sui’s SUI coin is managed by custodial services like BitGo, Anchorage and Coinbase Prime.
Copper is a U.K.-based service whose ClearLoop technology is used to settle trades and manage collateral. Its expansion in the traditional finance market has been facilitated by investments from billionaire Alan Howard, co-founder of asset manager Brevan Howard. Its Copper Securities arm was launched in November and offers tokenized securities in the Abu Dhabi Global Market.
Tokenized real-world assets have reached a market cap of $8 billion. They include private equity, real estate, government securities, commodities and other financial obligations.
Ondo is the third-largest issuer of tokenized assets and has achieved notably high returns, thanks in large part to its U.S. Government Bond Fund (OUSG), which is a tokenized derivative of BlackRock’s U.S. Treasurys ETF, which in turn consists of short-term U.S. Treasurys.
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